Leasing is the most commonly chosen form of financing the purchase of agricultural machinery in Poland. Over 60% of new machines go to farms on leasing. Why? Because it does not require large equity, allows VAT to be deducted and lets instalments be booked as costs.
Operating lease: instalments are a cost of earning revenue, VAT is paid on each instalment (not upfront), and after the contract ends there is an option to buy the machine for 1% of its value. Best for farmers on full bookkeeping.
Finance lease: the machine becomes the lessee’s property straight away (depreciation), and only the interest part of the instalment is a cost. Better for farmers with large depreciation write-offs.
What to watch for: RRSO (annual effective interest rate), up-front fee, final fee (buy-out), insurance included in the instalments or charged separately, and early repayment fee. You can calculate the specific leasing instalment, up-front fee and buy-out for your chosen machine in the financing calculator.